Plans to set up a medicinal cannabis industry on Christmas Island have moved “a big step closer” after the Senate passed historic laws.

The company behind the plans, Perth-based AusCann, is already readying itself for the business opportunities presented by the new laws by preparing to conduct clinical trials of medicinal cannabis in WA.

AusCann chief executive Elaine Darby said the trials could start within months, and would be an opportunity to test products which the company hoped to supply to Australian patients.